Kudos to @Whitshadw, I have not liked Taranto, but never find better options for the UK fleet. Gibastion never really worked for me…
Since the plan does not detail the UK1 buy, an airbase for Gibraltar is a possible supplement to this strategy, but in general it is not necessary.
It would only be necessary, if as @Cornwallis mentioned S. France is taken G1.
Without S. France or Algeria, there is no place to land before the UK fleet can escape to the Atlantic if necessary–i.e. full Luftwaffe deployment to Med+ whatever German subs work south.
The key for this to me was the DD blocker, with the French it keeps the UK fleet safe from direct attack by the Italians. Although the Italians won’t win, they can’t soften up the fleet for the Luftwaffe coup de grace–specifically hurting the CV. It also ensures the amphib assault fails, because now there is no shore bombard attack.
All this is great, BUT there is the downside that Italy can move all units in Africa to Egypt since there will be no air units to support a counter attack. They can only land UK2 in Egypt to defend.
Assuming UK turtles in Egypt, and Italy moves all-in. Then with the 2 transports, Italy could bring enough units to win Egypt on I2. Sure the UK fleet can move back to SZ98 to block, but now you’re losing the fleet again to a lesser navy and Egypt is endangered.
You gained nothing for your positioning except probably lost a DD blocker. Depending on how the Italians are spread out after attacking the French fleet (if necessary due to Vichy rules if active), you might try Taranto 2.0, but that is not as good as the original attack, if the Italian are in SZ97 with 1 BB, 2 CA, 1DD and 3 ftrs to scramble.
So I’ve saved my fleet but lost Egypt, not sure that is a good thing.